Five tips to help you remortgage
Experts expect interest rates to start moving up this year as inflationary pressures mount, so 2011 may be a good time to think about a remortgage. If you are one of those looking at the possibility, here are five tips to ease the remortgage process.
Read also: Is 2011 the year to remortgage?
With money so tight, it's never been more important to seek financial advice. A broker will help you find the product most suited to you and can guide you through the lender requirements. Go to moneywise.co.uk/findanifa.
While seeking advice is imperative, so is doing your own research. Some products are only offered direct through lenders, so brokers won't have access to them. Only by combining expert advice and your own research can you be sure you find the best deal.
Snap up rates
Many mortgage products are only available for a short period. In recent weeks some lenders, including Lloyd's Banking Group, even launched One Week Products - mortgages that were only available for seven days. If you find the rate you want, make sure you snap it up.
Don't feel tied to your lender
Your current lender should be your first port of call. See what it can offer you, but don't feel under pressure to stay with it if you can find a better deal elsewhere.
Don't overestimate the value of your home
Most of us base the value of our home on local 'for sale' prices, but a surveyor will do a valuation for a lender using 'sold' prices. We often tend to think our home is worth more than it really is, and this can cause problems when it comes to remortgaging.
A catch-all phrase that can range from assessing the price of a property or vehicle before offering it for sale or the net worth of assets in an investment portfolio to the prices of shares on a stock exchange.
Changing mortgages without moving home. Property owners chiefly remortgage to get a better deal but some do so to release equity in their homes or to finance home improvements, the costs of which are added to the new mortgage. Even though you’re not moving house, you still need to engage solicitors, conveyancing and the new lender will require the property to be surveyed and valued.
A financial adviser who is not tied to any financial services company (such as a bank or insurance company) and is authorised by the Financial Services Authority (FSA). They can advise on financial products to suit your circumstances. All IFAs have to give consumers the choice of paying by fees or commission and have to explain which would best suit the customer in that particular instance. Also, if commission is paid either by the client or the financial service provider recommended by the IFA, the IFA must disclose what that commission is.